Proposed Regulation for Safe Harbor Plans

A proposed regulation was published on January 18, 2017 that will allow a safe harbor plan to use forfeitures to offset safe harbor contributions.

In addition, forfeitures will be available to offset QNECs and QMACs. The proposed regulation can be found here.

However, plan administrators must follow the terms of their current plan documents. Therefore, many plans will not be able to utilize this option unless a plan amendment is adopted to remove the current restrictions regarding the use of forfeitures.

An amendment is required to take advantage of this proposed regulation, but it will not require a signature from the plan sponsor. Goldleaf will have an amendment ready during second quarter and will reach out to affected plan sponsors at that time. Those using a document that is not sponsored by Goldleaf Partners should contact their document provider for details. We will keep you posted as we learn more.